SFL Sells its Holding in Horizon Lines

Maritime Activity Reports, Inc.

June 1, 2015

Photo: Horizon Lines

Photo: Horizon Lines

Ship Finance International Limited (SFL) has sold its holding of notes and warrants in Horizon Lines, Inc. for net cash proceeds of approximately $72 million.
In April 2012, Ship Finance received $40 million of Horizon Lines second-lien notes and 9.25 million warrants in Horizon Lines in connection with a termination of the charters for five container vessels.
Thereafter, the second-lien notes have accumulated interest on a non-cash basis at a rate of 15 percent annually.
In November 2014, Horizon Lines announced a merger with Matson Navigation Company, Inc., subject only to regulatory approval of a sale of Horizon Lines' Hawaii assets to The Pasha Group.
On May 29, 2015, the parties announced the successful completion of the transaction, and Matson has paid $0.72 per warrant and the second-lien notes have been redeemed at a premium.
Ship Finance has conservatively recorded the notes on our balance sheet at 40 percent of par value, and the book gain is estimated to approximately $45 million, to be recorded in the second quarter. The cash proceeds from the notes and warrants are expected to be reinvested in new assets.
Maritime Reporter Magazine Cover Nov 2019 - Workboat Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Maritime Reporter E-News subscription

Maritime Reporter E-News is the maritime industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News